How to get the monthly rent up to 900,000 won back through year-end settlement?

If the owner of a homeless household with a total salary of 70 million won or less and lived in a house of 85 square meters or less or a standard market price of 300 million won or less, 10 to 12% of the monthly rent can be deducted from the tax.

If your credit card usage last year increased by more than 5% compared to 2020, you can deduct an additional 10% of the increase from your income.

The year-end tax settlement information that the National Tax Service introduced today (13th), which is useful to know, has been compiled in a question-and-answer format.

▲ If a non-homeowner householder whose gross salary (annual earned income minus non-taxable income) for the relevant taxable period is 70 million won or less, rents a house with a national housing size (85 m2 or less) or a standard market price of 300 million won or less. 10% of the (up to 7.5 million won per year) can be deducted.

If your total salary is less than KRW 55 million, 12% is deducted.

That's a benefit of up to $90,000.

In order to receive the monthly rent tax credit, you must move into the house according to your resident registration.

The target housing includes residential officetels and gosiwon.

▲ The income deduction for repayment of principal and interest on housing rentals is applied when a non-homeowner who rents a house with a national housing size (85 m2 or less) and a resident with wage and salary income borrows a deposit from a lending institution, etc.

To be eligible for the deduction, the borrowing must be deposited directly from the lender into the lessor's account.

For the income deduction for interest repayment of long-term mortgage loan (mortgage loan), the head of a household who does not own a home or owns one house (including members of the household if the head of the household does not receive deductions for the principal and interest repayment of the housing rental loan, housing purchase savings, and interest repayment amount) You can get it when you are satisfied.

Housing requirements (standard market price of 500 million won or less if acquired after 2019) are determined based on the standard market price at the time of acquisition, so it is not related to the current housing market price.

For the income deduction for housing purchase savings (subscription savings), non-homeowner householders with a total salary of KRW 70 million or less must meet the requirements.

Even if you and your spouse are living separately from your household, if your spouse owns the house, you cannot claim the housing savings deduction.

▲ In 2021, if the amount of consumption, such as credit cards, increased by more than 5% compared to 2020, an additional 10% of the increase can be deducted from income.

The deduction limit is also increased by 100,000 won.

However, to receive these benefits, you must meet the minimum annual usage amount (25% of gross salary).

Income deduction for increased use of credit cards, etc., is calculated based on the total amount of annual use in 2020 and 2021, even if you worked only for a certain period of the year.

▲ If you pay for medical expenses, school expenses for preschool children, and school uniforms by credit card, you may receive double tax credit for medical expenses and education expenses and income deductions such as credit cards.

Insurance premiums and donations are eligible for tax deductions for insurance premiums and donations, respectively, but credit card income deduction is not possible.

▲ The donation tax credit rate has been temporarily increased from 15% to 20% by 5 percentage points (donations exceeding KRW 10 million are increased from 30% to 35%).

If a worker with a total salary of 70 million won donated 12 million won last year, the tax credit amount is 2.7 million won.

▲ If the annual income of dependents exceeds 1 million won (or 5 million won in total salary if there is only earned income), personal deduction is not applicable.

Only one child of a dual-income couple is eligible for personal deduction, and the parent is only one of the siblings.

In the case of a death or birth of a dependent during the tax year, it is subject to personal deduction, but it is not a divorced spouse.

▲ You can receive basic deductions if you live separately for housing circumstances, but are actually dependent, other siblings do not receive the basic deduction for your parents, and if you meet the income and age requirements (age 60 or older).

▲ If you change company, you must obtain a withholding tax receipt from your previous place of employment and submit it to the place of work as of the end of December last year.

Workers who receive wage and salary income from multiple places at the same time must also add up their respective income to make year-end tax settlements.

By the end of the year, you can select your main place of work and submit a report on the rest of your work to your main place of work.

Mid-term retirees do year-end tax settlement when they pay wages for the month they retire from the company.

If you do not submit documents proving income and tax credit at the time of retirement, only wage and salary income deduction, basic deduction for yourself, standard tax credit (130,000 won), and wage and salary income tax deduction will be reflected for year-end tax settlement.

If there are other income and tax credits, you must file a final return on the global income tax base by the end of May of the following year.

▲ Young people, the elderly (over 60), the disabled, and women with career interruptions are eligible for a 70% tax reduction for 3 years from the date of employment in a small business (90% for 5 years for young people aged 15 to 34) (tax reduction or exemption) The limit is 1.5 million won per taxable period).

However, some industries, such as finance and insurance, health care, and legal/accounting/tax service, are not eligible for tax reduction or exemption, even for small and medium-sized enterprises (SMEs).

▲ The year-end tax settlement simplification service opens on January 15 every year, and the confirmation data is provided from January 20 after receiving additional or revised data from the receipt issuing agency.

Available daily from 6am to midnight.

▲ No.

It may contain material that is not subject to deduction, so workers must determine whether they meet the income and tax credit requirements on their own.

If you receive income and tax credits that are not subject to deduction, you will be subject to additional tax along with the lesser amount of tax paid in the future.

In addition, in the case of deduction proof that is not inquired in the service, you must obtain a proof document directly from the receipt issuing agency and submit it to the company.

▲ You can submit proofs such as a credit card issued by the credit card company or a receipt to the company.

▲ During the global income tax return period in May, you can reflect the omissions while filing a final return on global income tax base.

In addition, the worker himself or the withholding agent may file a claim for correction by reflecting the omission of income and tax credit.

▲ You can check various information on the website of the National Tax Service, 'Comprehensive Guide to Year-End Settlement' and the National Tax Service's YouTube channel.

The National Tax Service plans to disclose major year-end tax settlement counseling cases through the Hometax site and provide chatbot counseling services and PC remote control counseling services.